DOE Closes $489.4 Million Loan To Strengthen Puerto Rico Grid With 220 MW Battery Storage

The U.S. Department of Energy’s (DOE) Office of Energy Dominance Financing (EDF) has finalized a $489.4 million loan to Amanecer Puerto Rico LLC, a subsidiary of Pattern Energy, to strengthen Puerto Rico’s electricity grid, lower power costs, and improve long-term energy reliability across the island.

According to the DOE, the investment is expected to save Puerto Rican households and businesses around $312.5 million in electricity costs over the next 25 years. The financing is also intended to improve grid resilience, support American manufacturing, strengthen domestic energy supply chains, and reduce dependence on foreign-controlled technologies.

Announcing the loan, EDF Director Gregory A. Beard said the investment aligns with the Trump Administration’s efforts to modernize the nation’s energy infrastructure while reducing costs for consumers. He stated that the project will help strengthen Puerto Rico’s electric grid, support American manufacturing, and provide a pathway for reliable and dispatchable power needed to ensure affordable and secure electricity for residents and businesses.

Puerto Rico has faced frequent power outages and prolonged service interruptions in recent years, causing significant challenges for homes, businesses, and critical public infrastructure. Following a review by the Trump Administration, the DOE said it restructured the financing package to better reflect its priorities of lowering energy costs, promoting American manufacturing, and deploying reliable and secure energy infrastructure.

A major component of the financing will support the installation of 220 MW of battery energy storage systems (BESS) at Arecibo and Santa Isabel. The battery systems will use American-manufactured battery technology and secure domestic supply chains.

The DOE said the new storage facilities will be capable of providing backup electricity to more than 100,000 customers during power shortages. Based on 2025 operating data, the battery systems are also expected to help prevent approximately 13 million customer interruption hours by improving the stability and availability of electricity during grid disturbances.

In addition to battery storage, the financing includes a pathway for the future development of reliable, dispatchable natural gas-fired generation to enhance grid stability and improve Puerto Rico’s long-term energy security.

The DOE noted that the investment complements the administration’s broader initiatives to improve Puerto Rico’s electricity system. Since 2025, the department has issued and renewed emergency orders under Section 202(c) of the Federal Power Act to authorize critical electricity generation needed to maintain reliable service. It has also supported vegetation management and transmission maintenance efforts to improve grid performance, particularly ahead of peak demand periods and hurricane season.

According to the DOE, these combined emergency measures and long-term infrastructure investments are aimed at delivering a more reliable, resilient, and affordable electricity system for Puerto Rico while encouraging greater private-sector investment in American energy infrastructure.